They absolutely need this if they want to avoid being raped and pillaged by the bankers:
IOWA CITY, Iowa (Reuters) – U.S. Democratic presidential hopeful Hillary Clinton on Tuesday joined calls for changes in U.S. bankruptcy laws that would enable Puerto Rico’s public entities to restructure some $72 billion in debt.
In Washington, two Democratic senators hope to move forward within weeks with legislation in Congress that would allow the U.S. territory to restructure debts in bankruptcy court, instead of risking chaos.
Governor Alejandro Garcia Padilla of Puerto Rico dropped a bombshell on debt holders a week ago by saying he wanted to restructure debt and postpone bond payments. He urged changes to U.S. bankruptcy laws that currently exclude Puerto Rico.
Like U.S. states, Puerto Rico cannot file for bankruptcy protection. But Puerto Rico’s public entities do not have the ability of U.S. municipalities to enlist Chapter 9 of the U.S. Bankruptcy Code to restructure their debt.